Apple Tax Strategy, Big Corporation Tax Strategy

The latest annual report by Apple shows its brilliance in managing marketing and tax with equal ease. The company’s strategies allow it to save billions by paying less than ten percent of taxable income.

What is the secret behind this? The money earned outside of the United States is not brought into the country. Apple has many subsidiaries in countries outside the United States like the Netherlands, Ireland, British Virgin Islands and Luxembourg which are tax havens. The strategy known as ‘double Irish with a Dutch Sandwich’ that Apple pioneered has inspired many other multinational companies all over the world. The Apple owned subsidiary in the tax free state of Nevada, known as ‘Braeburn Capital’ is primarily maintained to manage the inflow of cash, which is not sent to California, the home state. Apple remitted a total tax of $3.3 billion in the year 2011 and the total profit was $34.2 billion that year. One study however states that Apple would have had to remit $2.4 billion extra if these rules were not there.

 

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